Australian Federal Budget Reaffirms BTC Will Not Be Treated As Foreign Currency
The new federal budget states that Bitcoin will fall under the "current tax treatment of digital currencies, including the tax treatment of capital gains, where they are held as an investment.”
New
The first federal budget under the government led by Anthony Albanese indicated that Bitcoin (BTC) will continue to be treated as a digital asset and not taxed as a foreign currency.
This clarification follows El Salvador's adoption of BTC as legal tender in September last year, with the Australian government essentially ruling out a change in classification despite it being used as currency in El Salvador and the Central African Republic .< /p>
The federal budget was released on October 25 and states that BTC will be subject to the "current tax treatment of digital currencies, including capital gains tax treatment, when held as an investment."
“This measure removes uncertainty following the decision of the Government of El Salvador to adopt Bitcoin as legal tender and will be backdated to revenue years that include July 1, 2021,” the budget document states.
Speaking to Cointelegraph, Danny Talwar, head of tax at Australian crypto tax accountants Koinly, suggested that the adoption of BTC in El Salvador has done little to sway opinions of the Australian Taxation Office (ATO) and Treasury, as they have always maintained. that Bitcoin should be taxed like other digital assets.
“Foreign currency tax rules in Australia follow income-based rather than capital-based treatment. taxes, but rather CGT assets for investors."
As such, as part of the classification of a digital asset, BTC investors will be subject to capital gains tax requirements when they make a profit on the sale of the asset.
Percentages vary as profits are usually included as p...
The new federal budget states that Bitcoin will fall under the "current tax treatment of digital currencies, including the tax treatment of capital gains, where they are held as an investment.”
New
The first federal budget under the government led by Anthony Albanese indicated that Bitcoin (BTC) will continue to be treated as a digital asset and not taxed as a foreign currency.
This clarification follows El Salvador's adoption of BTC as legal tender in September last year, with the Australian government essentially ruling out a change in classification despite it being used as currency in El Salvador and the Central African Republic .< /p>
The federal budget was released on October 25 and states that BTC will be subject to the "current tax treatment of digital currencies, including capital gains tax treatment, when held as an investment."
“This measure removes uncertainty following the decision of the Government of El Salvador to adopt Bitcoin as legal tender and will be backdated to revenue years that include July 1, 2021,” the budget document states.
Speaking to Cointelegraph, Danny Talwar, head of tax at Australian crypto tax accountants Koinly, suggested that the adoption of BTC in El Salvador has done little to sway opinions of the Australian Taxation Office (ATO) and Treasury, as they have always maintained. that Bitcoin should be taxed like other digital assets.
“Foreign currency tax rules in Australia follow income-based rather than capital-based treatment. taxes, but rather CGT assets for investors."
As such, as part of the classification of a digital asset, BTC investors will be subject to capital gains tax requirements when they make a profit on the sale of the asset.
Percentages vary as profits are usually included as p...
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